Just a few days ago, Circle (CRCL) made history as the first blockchain IPO since Coinbase’s debut in 2021. Initially priced at $31 (up from $27), Circle closed its first day at $83.23. As of Friday, June 14, CRCL is trading at $133.56, pushing its market cap to $33 billion—almost half the size of Coinbase, its key partner and custodian.
This IPO isn’t just a financial milestone. It marks a turning point in the way I think about money, payments, and U.S. treasury markets.
🪙 Circle and the Stablecoin Economy
Circle is the issuer of USDC, a fully-backed, regulated stablecoin anchored to the U.S. dollar. Its reserves are primarily held in short-term U.S. Treasuries, giving it a unique position: not just a payments firm, but a massive institutional buyer of U.S. debt.
In 2024, Circle earned:
- $1.66 billion in interest income
- $15 million in other income
- $470 million in net income after revenue-sharing with platforms like Coinbase and Binance
Coinbase, which custodies 23% of all USDC, earned $908 million in related interest revenue—13.8% of its total revenue.
💸 The Stablecoin Landscape
Today’s stablecoin market is dominated by three players:
- USDT (Tether) – ~$120B circulation
- USDC (Circle) – ~$60.6B circulation
- DAI (MakerDAO) – ~$5B circulation
A new contender, World Liberty Financial USD (USD1), tied to the Trump family, is reportedly preparing to enter the scene.
USDT dominates non-U.S. markets and less-regulated exchanges, while USDC is favored in regulated, compliant environments—especially in the U.S.
📈 Stablecoins = Treasury Buyers + Payment Rails
The biggest buyers of U.S. Treasuries may not be foreign governments in the future—but stablecoin issuers.
- USDT holds an estimated $120 billion in U.S. Treasuries
- USDC holds $60.74 billion
- These holdings make stablecoin issuers systemically relevant to U.S. debt markets
The GENIUS Act, a landmark bipartisan crypto bill, is moving through Congress. Among its key points:
- Payment stablecoins will not be regulated as securities or commodities
- It enforces national security reviews for foreign stablecoin issuers
- The bill passed a cloture vote in the Senate (68–30) and is heading to a final floor vote
This legislation could provide the clarity needed for mass adoption of stablecoin payments by U.S. institutions and merchants.
🛒 Amazon, Walmart & the $1 Trillion Question
In a move that could redefine the payments industry, just yesterday Amazon and Walmart are reportedly building their own stablecoin infrastructure. The goal: reduce or eliminate the $1 trillion in credit card fees levied annually on the 750 billion card transactions worth $40 trillion globally.
Credit card networks charge merchants 1.5–3.5% per transaction. In contrast, blockchain transactions charge fixed fees—independent of the transaction amount. For example:
- Ethereum gas fee: ~$0.20–$1.00 per transaction
- Layer 2 protocols can drive this even lower
Today, Circle charges no Paymaster fee and no off-ramp redemption fee until June 30, 2025, meaning:
- Merchants pay only the gas fee (in ETH, SOL, or AVAX)
- USDC users can pay gas fees in USDC via Paymaster
- Supported blockchains: Ethereum, Solana, Base, Avalanche
🔮 The Bigger Opportunity: Transaction Fees > Interest Income
While interest on Treasuries brings in billions, the real prize for stablecoin issuers is the transaction fee market.
If even 2% of the 750 billion global transactions shift to stablecoins, that’s:
- 15 billion blockchain-based transactions
- At $0.20–$1.00 per transaction, that’s $3–15 billion in potential fee revenue
$15 Billion earned by the stablecoin issuers, and hundreds of Billion dollars saved by merchants.
🧠 Final Thoughts
Circle’s IPO is a landmark moment, but it’s just the beginning. Stablecoins are evolving from a crypto-native niche into core financial infrastructure. With regulatory clarity on the horizon, and pressure mounting on credit card networks, the stage is set for a radical transformation of how money moves.The next time you tap to pay, it might not be with a Visa or Mastercard. It might be USDC.
